SANTO DOMINGO. – Economist Roberto Despradel, a consultant with the firm DASA, stated yesterday that investments in the tourism and real estate sectors have exceeded US$1.4 billion annually from 2019 to 2022.
In presenting the keynote address “Impact of Real Estate Tourism on the Economy of the Dominican Republic”, the expert in economic studies stated that in the period 2010 to 2014 Foreign Direct Investment (FDI) in the tourism sector averaged US$201 million annually, and from 2015 to 2018 it increased to US$755 million, while between 2019 and 2022 it averaged US$984 million.
He also noted that non-hotel accommodations have been the main driver of post-pandemic growth in the country, highlighting that between 2017 and 2022, the increase in stays in non-hotel facilities rose by 1.2 million tourists.
“Between 2018 and 2022, the number of tourist accommodation rooms increased from 85,694 rooms to 86,250 rooms, an increase of 2,724 additional rooms, equivalent to 3.3%,” said Despradel, during the first Real Estate Tourism Forum held yesterday by the Dominican Association of Real Estate Tourism Companies (ADETI).
In his presentation, Despradel explained that electronic platforms have changed the way people book accommodation and travel experiences, promoting diversity and personalization, which has been evident in the growth of tourism in the Dominican Republic.
He specified that from 2018 to 2023 the number of properties in provinces not traditionally touristic grew by more than 400%, noting that in the five most touristic locations (La Altagracia, Puerto Plata, Samaná, San Pedro de Macorís and La Romana), 2,421 properties were incorporated between 2018 and 2023, for a 15% increase.
According to figures shared by the expert, of the Airbnb accommodations in 2023, the aforementioned provinces have: 18,403 active units for rent, which represent 49% of the country's total; 43,984 total rooms, representing 52% of the national total.
Popularity of real estate tourism
Despradel explained that real estate tourism has experienced a significant increase in popularity in recent decades due to several factors that have converged to foster its growth, making it an attractive option for both tourists and investors seeking opportunities in popular tourist destinations.
Among the causes he cited were globalization, increased wealth, ease of travel, demographic changes, improved quality of life, profitability & diversification of investments, the rise of vacation rentals, promotion & marketing, tax benefits and incentives, and changes in travel preferences.
He argued that real estate tourism drives the development of other economic sectors, such as construction, retail and the hospitality industry, having a multiplier effect as a generator of jobs, infrastructure development, economic diversification, seasonality, among others.
He considered that the increased popularity of real estate tourism can be evidenced through various indicators that show the growing demand and participation in this industry, such as growth in the real estate market, increased supply of real estate services, increased foreign investment, growth in vacation rentals, influence on the local economy, increased property prices, among others.
Cover photo: Fidel Pérez/El Inmobiliario.
